Make no doubt about it. If you thought that the Quantitative Easing in the U.S. was inflating asset prices, and that our markets are benefiting from the combined efforts of the Treasury to weaken the dollar, especially against the Euro, then you are missing the big picture. The performance chart below shows 10 of the worlds major currencies over the past 200 trading days. Notice anything? There is only one currency, the Japanese yen, that is out of the box. 
It is not only out of the box but running 20% worse than any other currency over this period. It does not look to be letting up at all. Clearly Kuroda and Abe are sitting around the IMF, G-7 and G-10 meetings, finger wagging and saying ‘Who’s Your Daddy’ as everyone brings them another scotch. Can it go on forever? No! But it can go on for more time than you can fight against it. So embrace it. What does a weak yen mean? Gold in Yen will continue to outperform Gold in other currencies, and the Japanese market will continue to rise. 
These charts may have ginormous Relative Strength Index (RSI) readings, and be extended from their Simple Moving Averages (SMA) but this is Kuroda and Abe working. Remember who your Daddy is and continue to embrace these trends. When they are over, look for the next one.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Who’s Your Daddy! Kuroda And Abe Are Dominating The Currency Wars
Published 05/10/2013, 03:07 AM
Updated 05/14/2017, 06:45 AM
Who’s Your Daddy! Kuroda And Abe Are Dominating The Currency Wars
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